The Research and Development Tax Credit and the Injection Molding Industry

Injection Molds

Courtesy of Wikipedia.org user Brockey

Small and mid-sized companies that manufacture injection molds often don’t realize that their
particular line of business is filled with opportunities for money-saving tax credits. In particular, the Research and Development (R&D) Tax Credit champions any business whose endeavors include research, experimentation, streamlining, and invention.

Injection molding in particular has a particular set of characteristics that promote innovation, and that can help reduce taxes and save money for companies in that sector. For example, developing mold designs that help reduce the amount of plastic used in a molding cycle can qualify. Here are some other examples of activities that apply and can benefit from the research and development tax credit:

  • Conducting first article test runs by engineers, tool makers and operators
  • Inventing, prototyping, fabricating and/or testing molds and tooling
  • Process development and engineering
  • Creating a material application study
  • Conducting injection time analysis
  • Performing a gate seal study
  • Having a cavity balance assessment
  • Performing a rack and hold pressure study
  • Engaging in quality assurance, such as inspections and quality testing (including:checking dimensions, visual inspections, non-destructive testing, leak testing, and other part-specific tests.)

Though these examples are useful, it is still a daunting process to analyze all of your
business’ efforts for potential claim material. Fortunately, Tax Credit Advisors is here to aid
your company, and help make sense of the Research and Development tax credit terms! By contacting our professionals at Tax Credit Advisors, the process can be quicker, easier, and more profitable for your company. Tax Credit Advisors is well-versed in R&D tax credit claims,and can assist your company to maximize savings through this useful credit, making it possible to put your funds back into more production and growth. Contact us today for a consultation.

To arrange a FREE tax credit consultation, please contact us now, or call us at 508-842-3232 (US) or 774-696-3310 (Canada).

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